Sub-Threshold Procurement 2026 – Award Procedures Below the EU Threshold

Sub-threshold procurement: awarding public contracts below the EU thresholds. Procedure types, legal basis and practical guidance for 2026.

Definition: Sub-threshold procurement refers to the award of public contracts whose estimated net contract value falls below the EU thresholds and which are therefore handled under national procurement law (UVgO, VOB/A Section 1).

Last updated: January 2026 · Legal basis: UVgO 2017, VOB/A 2019 (Section 1), Budgetary Principles Act, BVergG 2018

What is sub-threshold procurement?

Sub-threshold procurement is, by volume, the most common form of public contract award in Germany and Austria. Because most municipal and government procurements do not reach the EU thresholds (EUR 143,000 for supply and service contracts; EUR 5,538,000 for works contracts), the vast majority of public contracts fall into this segment. The European procurement directives and Part 4 of the GWB do not apply to these contracts – the national rulebooks do.

Legal basis

Sub-threshold procurement law in Germany is governed by the Sub-Threshold Procurement Regulation (UVgO) for supply and service contracts and by VOB/A (Section 1) for works contracts.

UVgO: Adopted in 2017 by the Federal Ministry for Economic Affairs and Energy; declared applicable by the Federal Government and the federal states through references in their respective budgetary law. Does not apply directly by force of statute, but only where the relevant budget legislator refers to it.
VOB/A (Section 1): Rules for the award of works contracts in the sub-threshold range; applicable where the federal states refer to it in their administrative provisions.

In Austria, the BVergG 2018 also applies to sub-threshold procurement, but provides for simplified procedures.

Procedure types

The UVgO provides for the following procedure types for supply and service contracts:

Open invitation to tender: Unrestricted bidder pool, public notice, standard procedure
Restricted invitation to tender with competitive participation: Prior suitability check, then invitation of selected bidders
Restricted invitation to tender without competitive participation: Direct approach to at least three companies without public notice
Negotiated award with competitive participation: Public call for expressions of interest with scope for negotiation
Negotiated award without competitive participation: Direct approach without public notice; only under specific conditions
Direct award: The simplest form, without competition; up to a value limit of EUR 1,000 net

VOB/A (Section 1) provides comparable procedures for works contracts (open invitation to tender, restricted invitation to tender, direct negotiated award).

Value thresholds for procedure types

In practice, the Federal Government and the federal states have set different value thresholds for the sub-threshold range up to which simplified procedure types are permitted. These value thresholds vary considerably depending on the federal state and the type of contract. Typical reference values (without guarantee, depending on the applicable state law):

Procedure type	Supplies/services	Works
Direct award	up to EUR 1,000	up to EUR 3,000
Negotiated award (without competition)	up to EUR 50,000–100,000	up to EUR 50,000–150,000
Restricted invitation to tender	up to EUR 100,000–221,000	up to EUR 1,000,000
Open invitation to tender	unlimited	unlimited

Special features of sub-threshold procurement

Compared to the above-threshold range, sub-threshold procurement offers more flexibility, but compliance with the principles of procurement law is still required.

Key characteristics:

No obligation to publish in the EU Official Journal (TED)
Shorter tender and application deadlines
Less stringent documentation duties (but a procurement note is recommended)
Limited primary legal protection (no review proceedings before the Procurement Chamber under the GWB)
Secondary legal protection (damages) available

Legal protection in the sub-threshold range

Legal protection for unsuccessful bidders is weaker in the sub-threshold range than in the above-threshold range. Review proceedings before the Procurement Chambers under §§ 155 et seq. GWB only apply to above-threshold contracts. In the sub-threshold range, mainly civil claims (for injunctions or damages) are available. Some federal states (e.g. Bavaria, Saxony) have introduced supplementary sub-threshold legal protection.

FAQ

Does a sub-threshold procurement have to be publicly announced? That depends on the procedure type. Yes for open invitations to tender; not necessarily for restricted invitations to tender without competitive participation and negotiated awards without competitive participation.

Does the UVgO apply directly? No, the UVgO is an administrative regulation and only applies where the relevant budget legislator (federal government, federal states, municipalities) refers to it.

What applies to mixed contracts that partly exceed and partly fall below the threshold? For mixed contracts, the total contract value is generally decisive. If it exceeds the EU threshold, above-threshold law applies to the entire procedure.

Last updated: January 2026 All information without guarantee. For legally binding advice, please consult a law firm specialised in procurement law.